Mastering Your Mindset Mastering Your Money Focus: How to Focus on - - PowerPoint PPT Presentation

Mastering Your Mindset

Mastering Your Money Focus: How to Focus on Earning More Income, and Managing & Investing Your Money with John Assaraf

Money Is A VERY Powerful Idea Money Is A Means Of Exchange Money Is Abundant Money Is A Tool/Resource Money Gives You Options & Choices Money Is Energy

What Is Money?

Your Beliefs And Habits Around $$$ = Your Money Persona Your Skills And Knowledge = Your Ability/Efficacy Your Ability Plus Your Actions And Resourcefulness = Your Income And Financial Wealth

The Cornerstone of Your Money Story is Your Self Worth and Efficacy

“You must begin immediately to put value on yourself or others will not. If you don’t value yourself, money will never be attracted to you in abundance. You will repel it as fast as you can imagine or earn it.”

High Self-Worth Low Self-Worth High Efficacy Low Efficacy

Is Totally Capable Of Achieving The Goals And Success They Want Do Not Feel They Deserve or Are Worthy of Success Cannot Achieve High Levels Of Success Feels They Are Worthy & Deserve Success

The Foundation For Your Decisions: Start With Your End Goals

What Level Do You Want To Play At?

Pro University High School Grade School Kindergarten

Pile Theory Stream Theory

Save & Invest Until You Have A Pile Build & Invest For A Consistent Stream Of Income

Setting Your Financial Goals

College Fund For Child/Children Trip Or Vaca?on Re?rement Fund Buy A New Car Pay Off Credit Cards Leave A Legacy

What Do Most People Worry About?

How Do I Earn Enough Now and For My Retirement? Will I Have Enough To Retire? Am I Properly Invested? Could I Be Paying Less Taxes? Who Can I Trust To Help Me? Am I Doing The Best I Can With What I Have?

Your Money Focus

Earn Manage Invest

How to Focus on Income Generating Activities

Earn Manage Invest

The Laws of Earning Money

Is there a need in the market place for your knowledge, product, service or expertise How good is your product/knowledge/service or expertise compared to others who have the same or similar offerings How good are you at selling your product/knowledge/ service or expertise compared to others who have the same

• r similar offerings

The Laws of Earning Money

Bonus Thoughts:

• What is your skill level at investing in the stock market,

gold, bonds, real estate, oil, coins, furs, diamonds, etc.?

• What is your skill level at growing a business?

The 3 Scenarios

As an Employee/Job As a Business Owner Investor

Choosing a Path Based on Your Skills & Passion

Your Formula

3 Factors: Passion / Enthusiasm The Skill You Already Have or Want to Acquire Your Commitment Level:

Are You Interested or Committed? What Level Do You Want To Play At?

Passions, Knowledge & Skills

What Are Your Passions? What Do You Love To Do? What Comes Easily And Is Fun For You? What Skills Do You Have? What Specialized Knowledge Do You Have? What Must You Do To Upgrade Your Skills? What Is The Ultimate Career Path For You?

Create a List of YOUR Unique Abilities.

Example:

• Lead Teams
• Inspire Others
• Solve Problems Creatively
• Think Quickly
• Love Sales/Marketing
• Make Dynamic Presentations
• Great With Numbers
• Understands Systems & Processes
• Great Personality
• Very Artistic

What Are Options To Earn Money?

Negotiate A Raise Find A Higher Paying Job Invest In Stock/Money/Commodities Market Investing In Real Estate/Mortgages/Debt, etc. Investing In Business Opportunities Start/Grow A Business Choose A Path Based On Your Skills & Passion….

How to Make Smarter Decisions & Simple Money Management Techniques

Earn Manage Invest

You Must Know Your Numbers And Understand Your True North

Create Your Deliberate Saving, Spending and Investing Plan

Fixed Expenses Rent/ Mortgage, Utilities, Debt, etc. Average 50-60% of Take-Home Income Investments/Retirement Plans

• USA - 401(k), Roth IRA
• Canada - Tax Free Savings Accounts (TFSA),

Registered Retirement Savings Plan (RRSP)

• UK - Cash ISA
• Australia - Superannuation Guarantee

Allocate Minimum 10% Savings

• Long Term Savings (House Down Payment)
• Short Term Savings (Vacation, Gifts, Unexpected

Expenses)

Allocate Minimum 5-10% Guilt-Free Living Money Dining Out, Movies, Clothes, Shoes, Charity 20-35%

Example: Mary takes home $48,000 U.S. per year ($4,000 a month) after taxes

Fixed Expenses Rent/ Mortgage, Utilities, Debt, etc. (60%) $2,400 Investments/ Retirement Plans 401(k), Roth IRA (10%) $400/month Savings

• Long Term Savings (House Down Payment)
• Short Term savings (Vacation, Gifts, Unexpected

expenses)

(10%) $400/month Guilt-Free Spending Money Dining Out, Movies, Clothes, Shoes, Charity (20%) $800/month

Sample Monthly Budget

Major Categories

Variable items can be ramped up as this is conservative

Managing Your Money With Automation

On this date… This action happens 2nd Of The Month

• Part of your income goes into your

401(k)

• The rest of your income is directly

deposited into your checking account 4th Of The Month

• Automatic transfer from checking to

savings account

• Automatic transfer from checking

account into Roth IRA 6th Of The Month

• Automatic payment of bills form

checking and credit card

• Automatic transfer from checking

account to pay off credit card bill

How To Automate

Salary 401k Checking Account Roth IRA Savings Credit Card

• Misc. Bills

Options For Reducing Debt

Pay Off A Few Small Things First To Get Into The Habit Of Doing It OR Take One Larger Debt And Make Significant And Consistent Efforts To Pay It Off

Retirement Thinking And Planning

What Will The Cost Of Living Be When You Retire? What Is The Lifestyle You Want To Live? How Much Do You Need To Have In Savings | Investments | Cash Flow?

Will You Have Enough to Retire Smart?

Earn Manage Invest

Proper Investment And Asset Management Thinking:

Set Clearly Defined Goals Project Cash Flow Needs Establish Portfolio Access Risk Tolerance Strategic Tax Planning Create Investment Policy Select Investment Asset Classes Establish Allocation Model Select Investors or Managers Monitor, Rebalance and Adjust

Goal Setting For Investing and Preserving Wealth

Are You Saving For You Or For You & Immediate Family? Are You Investing For the Short Or Long Term? Are You Saving For Future Generations? Do You Want To Leave A Legacy?

5 Things To Consider

Choose Which Investment Opportunities To Match Your End Goals

Stock Market? Business Investments? Real Estate Investments? Collectables?

Investment Options – Create Diversity

Lifecycle Funds

• Less Control
• More Predictable Over Long Term

Index Funds / Mutual Funds

• Can Be Low Fees (Index funds) or Higher Fees (many

mutual funds)

• More Control Than Lifecycle Funds, Less Control

Than Stocks / Bonds

• Returns Are Fairly Predictable Over Long Term

Stocks / Bonds / Cash

• High Control
• Stock Offer Extremely Unpredictable Returns That

Typically Fail To Beat The Market

• Bonds Offer Extremely Predictable Returns, But On

Average Return Less Than Stocks

Money Management Resources

www.quicken.com www.mint.com www.pocketsmith.com www.moneydance.com www.acorns.com